Car haulers' strike on hold

Teamsters, transport firms continue negotiations

Published: Wednesday, June 02, 1999

WASHINGTON (AP) Talks between the Teamsters union and companies that haul new cars to dealerships went into overtime Tuesday as negotiators sought to avoid a strike that could cause long waits and higher prices for consumers.

''We're making progress but it's going to be a late evening,'' said Teamsters' president James P. Hoffa, who is facing his first major challenge at the bargaining table since March when he was sworn in as head of the union once led by his late father, Jimmy Hoffa.

Ian Hunter, chief negotiator for the National Automobile Transporters labor division, representing the companies' management at the talks in suburban Arlington, Va., said progress was ''slow but steady.''

The Teamsters' contract with 17 trucking companies that hauled more than 15 million cars last year was scheduled to expire at 11:01 p.m. CDT on Tuesday. However, Hoffa agreed to extend the strike deadline for 24 hours so the union could evaluate a last-minute offer from the employers.

The Teamsters' contract covers about 12,800 drivers, mechanics, yard and office workers. Union haulers currently earn $68,000 a year in wages and benefits, with salaries of $55,000.

By late afternoon Tuesday, Hoffa said some issues had been resolved, including an agreement to equalize pay rates that have differed for drivers in some parts of the country.

On Monday, the Teamsters claimed victory in a dispute over the possible use of Mexican drivers and trucks to deliver vehicles in the United States after the U.S.-Mexican border opens up Jan. 1 under the North American Free Trade Agree-ment.

Company officials said they had no plans to hire Mexican truckers.

Nevertheless, AFL-CIO Presi-dent John Sweeney praised the Teamsters, saying ''cross-border trucking poses significant risks and concerns to working families and the American public's safety.... America's highways will be safer now that Mexican trucking is off the car haul negotiating table.''

Despite some progress, however, Hoffa warned that some key issues remain unresolved.

Among remaining points of contention that Hoffa has said the union is willing to strike over are the companies' proposals to start new workers at lower wages and to hire part-time drivers. Another key Teamsters' demand is for higher pensions for workers who retire after 25 years.

Auto industry analysts said a strike of any significant length could hurt consumers as well as car companies. Shoppers who order new cars may face a long wait, and dealers could drop some sales incentives to ease demand.

''A Teamsters haulers' strike could interrupt what could be a banner profit year for the car companies,'' said Lincoln Merrihew, automotive analyst for Standard & Poor's DRI.

In 1995, a 32-day walkout by just 5,000 Teamsters working for Ryder System Inc. prevented the transport of thousands of new cars to dealers from factories, ports and distribution centers.

With unemployment at its lowest level in nearly three decades and the stock market climbing, Americans have been snapping up new cars.

The Teamsters contend the trucking companies have shared in the profits and can afford to treat workers better.

However, the companies say their share of business has declined in recent years due to competition from railroads and nonunion haulers.

''Unless we change the way we do business, there will be less business for us, and fewer union jobs, in the future,'' said Hunter.